The introduction of cross-compliancemechanism in the European Union with its 2003 CAP-reformmight affect the costs of production and thuscompetitiveness of the EU. Little evidence is available toasses the costs of compliance with regulations and it implicationfor trade. In this study a farm...

We propose a three-step procedure toestimate a regime-dependent vector error correctionmodel (VECM). In this model, not only the short-runadjustment process towards equilibrium is non-linear,as in threshold VECM and Markov switching VECMframeworks, but the long-run equilibrium relationshipitself...